Apex Parks Group Files Chapter 11 Bankruptcy
Apex Parks Group, LLC announced that it is pursuing a comprehensive financial restructuring aimed at reducing the Company’s current debt. As part of this process, Apex has filed for Chapter 11 of the United States Bankruptcy Code in the District of Delaware to facilitate the sale of the company.
As it currently stands, the company plans to be acquired by a lender group led by Cerberus Capital Management LP.
This is the latest development in the last few months of the chain. In February, the chain shut down their two largest parks Fantasy Island and Indiana Beach.
County officials have been taking an active role in attracting and negotiating with potential buyers for the park.
On March 17, both the commissioners and the White County Council approved a $3 million incentive to potential buyers of Indiana Beach.
That money, a loan which the county could “forgive,” will also come with conditions, including that Indiana Beach must remain an amusement park for a length of time the county will impose.
Although some of Indiana Beach’s rides and arcade attractions have been sold off, the chain has had a few offers — and according to city officials, there is a sale pending. Unfortunately, officials are under a non-disclosure agreement about the negotiations and cannot say anything about a potential sale at this stage.
Apex Parks Group has paid over $500,000 in refunds to season passholders of Fantasy Island.
“The actions we are taking today will help better position the Company for the future and enable us to continue serving our guests, team members and other business partners in the years ahead,” said John Fitzgerald, Apex CEO. “Apex has faced a number of challenges in recent years, including increased industry competition and consolidation, extensive operational expenditures and the seasonal nature of the business. To address these challenges, we have implemented numerous operational initiatives to increase profitability; however, despite these efforts and the hard work of our team members, continuing market headwinds and operational challenges have prevented us from meaningfully improving financial performance. After an exhaustive examination of all options, we’ve determined that a sale of the Company through the Chapter 11 process is the best path forward to enable Apex to focus on future operational transformation and growth.”
The Chapter 11 process will not affect the operations of Apex’s 10 family entertainment centers and two water parks in California, Florida, or New Jersey. The company’s properties are all currently closed as a response to COVID-19.
Upon resumption of regular business operations, the company intends to:
- Honor customer programs such as Season Passes and gift cards at its operating parks
- Pay employee wages and benefits in the ordinary course of business
- Pay vendors and suppliers in a timely fashion
Details are developing rapidly, so check back for further updates!
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